Ryanair Group: profit of 663 million euros in Q1

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Ryanair Holdings announced this July 24, 2023 profits of 663 million euros in the first quarter ending June 30, compared to profits of 170 million euros in Q1 of the previous year affected by the situation in Ukraine.

“Due to a strong Easter period, an additional UK bank holiday (coronation) in May and weak year-on-year comparisons due to Russia’s invasion of Ukraine in February 2022, which damaged traffic and prices in the first quarter of last year”, the Irish budget flight specialist and its subsidiaries reports Q1 traffic up 11% at 50.4 million passengers. The average load factor reached 95%, up 3 percentage points. Q1 revenue to €3.65 billion is up 40% compared to the same period in 2022, while costs have increased “only” by 23%. Revenue per passenger increased by 27% (including +42% for the average ticket price and +4% for ancillary revenue).

On the operations side, Ryanair Holdings had at 30 June a fleet of 558 aircraft including 119 Boeing 737-8200s (five more expected at the end of July, and 173 received by the end of 2023). During the quarter, three new bases were opened in Belfast, Lanzarote and Tenerife, and 190 new connections launched for the summer season. The low cost maintains its forecast of 300 million annual passengers by 2034. Group CEO Michael O’Leary said in a statement: ” This summer, in anticipation of increasing air traffic control disruptions, we have invested heavily in operational resilience (increased crew ratios, doubling the size of our Dublin and Warsaw operating centers, improving our day of travel app and continuing to improve our live communications with customers) to ensure our passengers and crew continue to enjoy Ryanair’s punctuality and reliability. »

Every customer switching to Ryanair from traditional high-fare EU carriers can reduce emissions up to 50% per flight. We continue to invest heavily in new technology aircraft. During the first quarter, we took delivery of 21 fuel-efficient “Gamechanger” 737-8200 (…); and in May we signed an agreement with Repsol to supply FAS to Ryanair bases in Spain. This builds on similar SAF agreements with OMV, Neste & Shell and puts the Group on track to achieve its ambitious target by 2030 of powering 12.5% ​​of Ryanair flights with sustainable fuel – with 9.5% already secured. “.

The leader added: as Ryanair Group’s traffic grows to 300 million per year by FY34, we expect to create more than 10,000 new jobs well paid for highly skilled aviation professionals. To facilitate this growth as we take delivery of another 90 Gamechangers and 300 MAX-10we recently ordered 12 new simulators CAE (6 farms and 6 options worth over $120 million). Building on the success of our new center training state-of-the-art aerospace in Dublin, we have finalized plans to develop 2 similar centers of excellence to accelerate crew training in Central Europe (Krakow) and the Iberian Peninsula. We are also upgrading our UK training center in the East-Midlands “.

Ryanair predicts that European airlines “will continue to consolidate over the next 2-3 years”, with the acquisition of ITA Airways (Italy) and the sale of TAP Air Portugal (Portugal) already underway. The large aircraft order book is “likely to limit capacity growth in Europe for at least the next 4 years”, allowing Ryanair to further extend its market share gains. “Our unit cost advantage over EU competitors, fuel hedging, a strong balance sheet and low-cost aircraft orders through 2033, coupled with our industry-leading operational resilience, create significant growth opportunities for Ryanair over the coming years.”

John Walker Avatar